The Rundown

• Last year, Bank Transfer Day sparking an unprecedentednational movement that inspired hundreds of thousands to becomemembers.
• Some industry leaders say there's an excellent opportunityto build on the BTD movement.
• Other credit union observers contend that BTD was just aone-off event that will fade away.

Monday, Nov. 5th, marks the first anniversary of Bank Transfer Day, a national grass-roots social media movementthat motivated 664,000 consumers to join credit unions, leavingtheir rising big bank fees behind. What's more, Transfer Day'sunprecedented and widespread media coverage told the story ofcredit unions as a better alternative to banks.

But will credit unions be able to build on the movement'smomentum and expand its positive message to keep attracting newmembers and grow deposits and assets?

Some credit union leaders say Transfer Day one year later stillrepresents an extraordinary opportunity to craft a central andcontinuous marketing message that will keep the positive creditunion brand in front of the public for years to come. Butothers argue the day was just a one-off event that will eventuallyfade away.

But the momentum did seem to carry through 2012. Last month, 56%of credit unions said members' growth in the past year has exceededexpectations, and 55% of credit unions said accounts have beenincreasing among new members, according to a survey by NAFCU.

“BTD has been a game changer longer term because it increasedthe awareness of credit unions as an alternative to big banks,”said Jerry Schmitt, vice president of marketing for the $4.8billion Bethpage Federal Credit Union in Bethpage, N.Y. “We hadincredible numbers on BTD and throughout that week. This year wedecided to continue leveraging BTD in our marketing during theanniversary. We see it as another opportunity to remind peopleabout the credit union difference that helps us attract newmembers.”

Since Transfer Day last year, Bethpage FCU has added 35,800 newmembers. Though Schmitt is not sure how long the mojo will last,other credit unions leaders see a rare opportunity to keep theunderlying message and conversation alive and well in themarketplace that can benefit all credit unions.

Troy Hall, chief operations officer for $1.3 billion South Carolina Federal Credit Union in North Charleston, S.C.,said he believes that through collaborative marketing efforts,credit unions can reap the benefits of using a simplecall-to-action tagline, Every Day Is Bank Transfer Day.

“Kristen Christian [Transfer Day founder] said credit unionsneed to own BTD, so we ran with it,” said Hall. “Why is thetrademark valuable? Because we have received more publicity on thistopic than on anything we have ever done before in the history ofcredit unions.”

Hall led the efforts to trademark Every Day is Bank Transfer Dayearlier this year. He transferred the trademark to CUNA so that itwould be available free for all credit unions to use at a taglinefor their marketing campaigns.

Leveraging the Every Day is Bank Transfer Day tagline, Hallsaid, is similar to the concepts of other cooperative andsuccessful taglines such as Got Milk? Pork, The Other WhiteMeat, and the Incredible Edible Egg. Reportedly, thelong-standing marketing promotions have substantially increasedconsumer consumption of these products, boosting industry profits.

But unlike the milk, pork and egg industries that spent millionsin national marketing campaigns, credit unions wouldn't need toinvest a fortune to promote Every Day is Bank Transfer Day, and itwould allow many of the industry's small and midsize credit unionsparticipate, Hall said.

Hall proposes that credit unions in common geographic areascollaborate and share resources to coordinate marketing campaignsthat would highlight the trademark message, Every Day is BankTransfer Day. For example, some South Carolina credits unionsused the tagline throughout the month of October on their print,social media and Web advertising as well as radio and TV spots.Samples of these coordinated marketing promotions are on www.btdnow.org.

“If we already understand that Everyday is Bank Transfer Day is a viable conversation in themarketplace, then why wouldn't we do it?” asked Hall. “That is thewhole idea–to leverage the conversation, the message that isrelevant and valuable in the marketplace. This is the opportunityfor us to make this voice really loud and powerful in themarketplace.”

But Ron Shevlin, an Aite Group senior analyst of the banking andcredit union industries, said the problem is that movements likeBank Transfer Day tend to have a short shelf life.

Aite Group research that found 10% of banked consumers switchedfrom their banks to credit unions in 2011. When asked what factorsinfluenced their decision to switch, 8% cited Transfer Day.

In his June 18 blog, Shevlin called the result “less than arousing success” in part because “for the most part, credit unionsthemselves did diddly-squat to create or promote BTD. Which meansthat their ROI on BTD with 8% influence rate was huge,” he wrote.“It's always a great marketing tactic when you can get someone elseto do all the work while you reap the benefits.”

“As far as I'm concerned, BTD 2011 was a passing phenomenon. Aone-time shot,” Shevlin wrote. “The pieces came together at themoment in time in 2011, and those pieces aren't there in 2012.”

What more, when Credit Union Times contacted more than a dozencredit union leagues and associations around the country–New York,Texas, California, New Mexico, North Carolina, Virginia, Illinois,Pennsylvania, Kansas, Florida, Georgia, Oregon, Washington, SouthCarolina and Ohio–most of them reported there were no plannedevents among credit union members to promote the firstanniversary.

“Most of our credit unions right now from what I'm hearing areconcentration what they are doing for Credit Union InternationalDay and Week,” Bonnie Sklar, public relations coordinatorCredit Union Association of New York, said in last month. “A lot ofthem promote around that. The banks also use it as an appreciationday for their members and to get the word out about what they aredoing. That may be why there hasn't been a lot of buzz aboutBTD.”

Nonetheless, a few credit union leagues have been observingBTD's first anniversary. For example, South Carolina CreditUnion League has been featuring Every Day is Bank Transfer Day newsitems on its site. And the Southeastern League of Credit Unions ishosting Transfer Day founder Kristen Christian at its Leadership Development Conference Nov.6-9 in Point Clear, Ala. She will be speaking at two breakoutsessions: Making Every Day Bank Transfer Day and Marketing toMillenials.

In an email interview with Credit Union Times, Christian saidthat we'll likely see the effects of Transfer Day for years tocome.

“I sincerely hope that credit unions continue to share theirindividual approaches to the people helping people mission toperpetuate the dialogue about viable banking alternatives,”Christian said. “The next two generations of consumers, dubbedMillennial and Homeland, will be receptive to and supportive ofthis mission. Whether through Bank Transfer Day or other channels,I plan to share the cooperative message and commemorate theanniversary for many years to come.”